Earnings Call Transcript Analysis Report #
Tata Consumer Products Limited Q4 FY25 Earnings Call Analysis #
Financial Performance #
- Key Metrics:
- Q4 Consolidated Revenue: Grew 17% YoY (12% organic).
- Q4 India Branded Underlying Volume Growth (UVG): Grew ~6%.
- Q4 India Beverages: 9% organic growth; Tea volume +2%.
- Q4 India Foods: 27% growth (17% organic); Salt volume +5%.
- Q4 International: 5% revenue growth (2% constant currency).
- FY25 Consolidated Revenue: Grew 16% (9% organic) to ~INR 17,600 crores.
- FY25 India Branded UVG: Grew ~5%.
- FY25 India Beverages: 3% organic growth; Tea volume +1%.
- FY25 India Foods: 29% growth (13% organic); Salt volume +4%.
- Q4 Consolidated EBITDA: Declined 1% YoY due to higher input costs (primarily tea). Margin at 13.6% vs 16.1% YoY.
- FY25 Consolidated EBITDA: Grew 8% YoY to INR 2,500 crores. Margin at 14.2%, down 110 bps YoY due to tea cost inflation.
- Group Net Profit (Q4): Up 64% YoY to INR 349 crores.
- FY25 Group Net Profit: INR 1,250 crores.
- Working Capital: Reduced by 1 day YoY; India business achieved negative 1 day working capital.
- Cash: INR 1,800 crores end of year.
- Dividend: Final dividend of INR 8.25 per share proposed.
- Comparisons: Strong top-line growth driven by both organic performance and acquisitions. Margin compression evident due to significant tea cost inflation.
- Guidance/Forecasts: Aiming for double-digit revenue growth with EBITDA growing faster than revenue. Expect margin recovery towards ~16% by Q2/Q3 FY26 if tea costs normalize.
- Growth/Decline Areas: Strong growth in India Foods, Growth Businesses, and Non-Branded. Margins declined due to input costs. International growth moderate.
Strategic Initiatives & Business Updates #
- Major Announcements: Introduction of Underlying Volume Growth (UVG) metric for India Branded business. Completion of margin synergy realization from Capital Foods & Organic India acquisitions.
- New Products/Markets: 41 new launches in FY25. Entered Food Service (16 cities planned).